The ________ the reserve ratio, the ________ the money multiplier.
A) smaller; larger
B) smaller; smaller
C) larger; larger
D) None of the above are correct
Answer: A) smaller; larger
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Suppose the government increases the annual cost of the liquor permit that a tavern needs to serve alcohol. What effect will this increased cost have on the tavern's production and pricing decisions?
a. None-the tavern will maintain its current prices. b. The tavern will raise its prices to cover the higher cost. c. The tavern will scale back its operations. d. The tavern will cut its prices to increase its sales.
Health insurance markets are likely to attract a disproportionate number of ________ individuals
A) high-risk B) risk-seeking C) low-risk D) risk-averse
Refer to Table 15-3. If Comcast wants to maximize its profits, what price (P) should it charge and how many cable subscriptions per month (Q) should it sell?
A) P = $12; Q = 8 B) P = $16; Q = 4 C) P = $14; Q = 6 D) P = $15: Q = 5
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. Both Dan and Ann realize that they are better off producing and not stealing from each other than producing and stealing from each other. They agree not to steal from each other. There is no enforcer of their agreement to not steal. It is likely that
A. Dan and Ann are in a prisoner's dilemma setting. B. Dan is in a prisoner's dilemma setting but Ann is not. C. Ann is in a prisoner's dilemma setting but Dan is not. D. neither Dan nor Ann is in a prisoner's dilemma setting.